The introduction of EMV 3®-D Secure is a significant development for the entire digital payments industry. By improving several key areas, these protocols will elevate the whole digital commerce world.
This development is occurring at a critical juncture in this industry, since several problematic trends have emerged over the past couple years. One of them is cart abandonment, which has become prevalent due to the long and convoluted checkout process that consumers have been forced to go through during their online transactions.
Fortunately, EMV 3DS was created to address these shortcomings and improve the overall experience. There are two main reasons that these new protocols will drastically reduce cart abandonment – enhanced data-sharing and new, dynamic authentication methods.
The emphasis on data will enable issuers to make more informed, efficient decisions during authentication. With this new data, 95 percent of transactions will be silently authenticated, in the background, without impacting the consumer’s checkout experience. The likely result of this will be consumers who are both more satisfied and less likely to abandon their transaction at the last second.
The remaining 5 percent of transactions will require some form of additional authentication, often referred to as a step-up. This process often resulted in cart abandonment under the old version of 3-D Secure, since it required consumers to authenticate themselves with a static password or the answer to a knowledge-based question, two static authentication methods that consumers often struggled to produce. These methods will no longer be used.
In their place, EMV 3DS is adopting various dynamic authentication methods, like one-time passcodes and biometrics. These options will give consumers an easier way to complete their transaction and less of a reason to abandon it.
Cardinal is actively preparing for the global activation of EMV 3DS. It’s important to prepare, which you can do by working with Cardinal and using a rules-based solution like Cardinal Consumer Authentication (CCA). CCA lets merchants collect, and pass, the additional data fields for EMV 3DS today, allowing them to stay ahead of this important deadline.
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EMV® is a registered trademark in the U.S. and other countries and an unregistered trademark elsewhere. The EMV trademark is owned by EMVCo, LLC.